1099-K $600 Threshold Calculator

Payment platforms (Venmo, PayPal, Cash App, eBay, Etsy, Stripe) must issue Form 1099-K for any user receiving $600+ in business payments in a calendar year. After IRS delays (2023→2024→2025 at higher phased thresholds), 2026 is the first year at the full $600 threshold. ~30 million+ Americans will receive 1099-Ks for the first time.

Goods and services payments - selling items, providing services, gig work. Personal transactions (splitting a dinner, rent reimbursement, gifts) should NOT be reported on 1099-K. Most platforms have toggles for "goods/services" vs "personal/family" - using the wrong one can trigger erroneous 1099-K. Always use "personal" for non-business transactions to avoid tax-time confusion.

Same tax treatment - reported on Schedule C, subject to self-employment tax (15.3% SECA), but you can deduct business expenses to reduce net income. The 1099-K just makes the income harder to forget. Hobby income (sporadic, not for profit) doesn't qualify for Schedule C deductions but is still taxable as "other income" - IRS uses 9 factors to distinguish hobby vs business.

Selling personal items at a loss (your old couch on Facebook Marketplace for $700) is NOT taxable - but the 1099-K will still be issued. You report the gross on Schedule 1 then offset with the same amount on Schedule 1 line 24z as "Form 1099-K personal item sold at a loss." Selling AT A GAIN (a collectible you bought for $100 and sold for $700) IS taxable - report as capital gain on Schedule D.